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CIRCULAR No

CIRCULAR No. 21/2002/TT-BTC OF MARCH 1, 2002 GUIDING THE NATURAL RESOURCES TAX EXEMPTION FOR MATERIALS EXPLOITED AND USED IN THE CONSTRUCTION OF HO CHI MINH ROAD (PHASE I)

Pursuant to the Natural Resources Tax Ordinance (amended) of August 16, 1998;

Pursuant to the Government�s Decree No.68/1998/ND-CP of September 3, 1998 detailing the implementation of the Natural Resources Tax Ordinance (amended);

Pursuant to the Prime Minister�s Decision No.18/2000/QD-CP of February 3, 2000 on investment in the project on the construction of Ho Chi Minh road (phase I);

The Ministry of Finance hereby guides the exemption of natural resources tax for materials exploited and used for construction of Ho Chi Minh road:

I. SUBJECTS ELIGIBLE FOR NATURAL RESOURCES TAX EXEMPTION

1. Organizations and individuals that are liable to natural resources tax, directly exploit natural resources subject to natural resources tax from various mines of stone, earth, sand, gravel, underground water, etc., for supply and use in the construction of Ho Chi Minh road, shall not have to pay natural resources tax for such natural resources. Organizations and individuals, when selling their exploited products, must not incorporate the exempted natural resources tax in the selling prices.

2. The exemption of natural resources tax shall apply only to the volume of natural resources directly exploited by organizations and individuals for use in the construction of Ho Chi Minh road, or directly supplied by the exploiters to the users for the construction of Ho Chi Minh road.

II. DECLARATION AND DETERMINATION OF TO BE-EXEMPTED NATURAL RESOURCES TAX

Subjects entitled to natural resources tax exemption as guided by this Circular shall have to:

1. Register and declare for payment of natural resources tax with the tax agencies managing the natural resources tax collection according to the provisions of the Ministry of Finance�s Circular No.153/1998/TT-BTC of November 26, 1998;

2. Separately account the volume and value of natural resources subject to natural resources tax but exempt therefrom according to the Prime Minister�s Decision No.18/2000/QD-TTg of February 3, 2000 since they are used for the construction of Ho Chi Minh road.

3. The selling prices of natural resources and declaration of to be-exempted natural resources tax shall be determined as follows:

a/ For natural resources directly exploited and used by organizations and individuals for the project construction:

To constitute bases for determining natural resources exploited and used for the project construction and therefore exempt from natural resources tax, the natural resources exploiters shall have to send to the local tax agencies directly managing the natural resources tax collection the contracts on project construction, cost estimates, construction designs of the project and project items of Ho Chi Minh road, which they undertake to construct and have been approved by the competent agency(ies).

In cases where the natural resources exploiters and users do not account selling prices of natural resources used for the project construction, they shall not have to make natural resources tax payment declaration for the volume of natural resources already exploited for use. In cases where internal accounting is made separately for natural resources-exploiting units and natural resources-using unit, the exploiting units shall have to declare the volume and value of the already sold and natural resources tax-free natural resources, draw up and send within the first 10 days of each month a list of natural resources tax declarations of the previous month to the tax agency for the tax-free natural resources volume. Upon making annual settlement, they shall have to declare and settle all exempted natural resources tax amounts and payable ones (if any).

Tax agencies shall base themselves on written natural resources tax declarations of units to determine the natural resources tax amounts to be monthly exempted and payable amounts, if any, and notify such units of the payable amounts. At the end of each year or upon the termination of natural resources exploitation contracts, the units shall have to make tax settlement with the tax collection-managing agencies within 30 days, fully pay the outstanding tax amounts, get overpaid tax amounts reimbursed or cleared against the payable natural resources tax amounts of the subsequent period according to regulations.

b/ For natural resources exploited and directly supplied by the exploiting units to the units engaged in the construction of Ho Chi Minh road, to enjoy the natural resources tax exemption, the natural resources-exploiting units shall have to:

- Send to the tax agencies, where natural resources tax payment registration and declaration are made, the natural resources purchase and sale contracts signed with the units engaged in the construction of Ho Chi Minh road (copies stamped with units� seals).

- Monthly, the natural resources-exploiting units shall have to make natural resources tax declarations with the tax agencies within the first 10 days of the following month, regarding the volume of and turnover from the already sold natural resources, in which the volume of tax-free natural resources sold to the units engaged in the construction of Ho Chi Minh road is detailed (together with the list of sale invoices of goods sold to these subjects).

At the end of each year or upon the termination of natural resources-supply contracts, the natural resources-exploiting units shall have to make tax settlement with the tax collection-managing agencies within 30 days, fully pay the outstanding tax amounts, get overpaid tax amounts reimbursed or cleared against the payable natural resources tax amount of the subsequent period according to regulations.

The natural resources tax collection-managing agencies shall base themselves on monthly written natural resources tax declarations of units to determine the to be-exempted and payable natural resources tax amounts and notify such units thereof according to regulations.

c/ Selling prices of natural resources exempt from natural resources tax in the above-said cases are those without natural resources tax. Sans-natural resources tax selling prices are determined as equal to the selling prices with natural resources tax minus the natural resources tax. In cases where units sell natural resources eligible for natural resources tax exemption at selling prices with natural resources tax, they shall not be exempt from natural resources tax for such natural resources.

Subjects committing fraudulent acts to enjoy natural resources tax exemption shall be handled according to the provisions of law.

III. ORGANIZATION OF IMPLEMENTATION

This Circular takes effect after its signing and the natural resources tax exemption shall apply to subjects engaged in the exploitation, use and/or supply of natural resources for the construction of Ho Chi Minh road as from the effective date of the Prime Minister�s Decision No.18/2000/QD-TTg of February 3, 2000.

Tax agencies shall have to inspect and determine the volume of natural resources sold by the exploiting units and exempt from natural resources tax. If for natural resources sold to the construction units for use before January 1, 2002, the natural resources tax calculation, payment declaration and settlement have already been made, the natural resources tax shall not be re-calculated.

For the Minister of Finance

Vice Minister
VU VAN NINH